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Project Management C13PM

Session 2

Project Initiation & DefinitionRussell Taylor

Business DepartmentStaff Workroom

E-mail: rtayl@borderscollege.ac.uk

Business Department 2

Session 2

• Project Initiation & Definition– Chapter 2

• Project Initiation & Project Charter • Project Trade-offs: Scope, Cost & Time• Project Feasibility study• Appointing the Project team

Business Department 3

Project Classification

1. Participation mix– Internal,– external, – mixed internal & external

2. Project Type– Concrete– Occasional– Open

3. Project Visibility– Low Visibility– High Visibility

Business Department 4

Project Classification

• High Visibility– critical to market position/organisational

survival– demand senior management commitment– high risk of failure– large amount of organisational change

Business Department 5

Project Classification

• Low visibility– not seen to be critical or urgent– little senior management attention– lower probability of failure / lesser

consequences– simple adaptations as opposed to

organisational change

Business Department 6

Projects life-cycle

Initiation & Definition

•Define Project Scope•Conduct feasibility study

DevelopmentPlanning

•Generate Activities & Interdependencies•Determine Responsibilities•Define resources•Develop Schedules & Budgets•Identify Risks

Execution & Control •Track & Manage Project

Closure •Perform Post-Project Reviewfeedback

Business Department 7

Rational for Starting a New Project

• Market demand– New product

• Business need– Development

• Customer request– Commissioned

• Technological advancement– Strategic

• Legal requirements– Compliance with legislation

• Crisis - Business – Environmental

Business Department 8

External Project Influences

Competitive

Environmental

Technological

Consumer

Strategic

Business Department 9

Project Initiation - 1

• Determine Project mission– Goals, Purpose, deliverables

• Determine Project focus– Shared commitment

• Determine Project Critical Success Factors (CSFs)– What must be achieved to guarantee success?

Business Department 10

Project Initiation - 2

• Determine Project Objectives– What is the plan? what are the milestones?

• Determine Project Constraints – Money available, completion dates, quality

requirement• Determine Project Risks

– What can go wrong? What alternative action should be taken?

Business Department 11

Project CFS & Objectives

• Identify CFS (Critical Success Factors)– Those deliverables that must be achieved in

order for the project to succeed– Essential recourses, skills and attributes

• Objectives – Specific– Measurable– Achievable– Result-orientated – Time-based - milestones

• Project Constraints

Business Department 12

Importance of pre-planning

Business Department 13

Project Scoping - 1

• Scope – The boundaries of the project • Project scoping

– Defining the boundaries • Information gathering exercise

Business Department 14

Project Scoping - 2

• Initial consolation with key stakeholders– Develop relationships– Resolve conflicts early– Clarify the rational behind the project– Establish key timelines, responsibilities,

costs etc.• Key Deliverables

– Scope Statement– Project Charter– Feasibility study

Business Department 15

Scope Statement - 1

• Definition of the project – As agreed by the Stakeholders

• A description of the product or service being provided – Forms the basis of agreement – Will be basis for all project related decisions – Used to determine whether the project has been

completed

Business Department 16

Scope Statement - 2

• Who is performing the project – project team?

• What are they trying to accomplish? – Project scope & goals

• For whom are they doing this - Project Sponsor

Business Department 17

Project Charter• Project Plan • Document that formally authorises the

project• Record of communications with

stakeholders• Free of detail design• Determines key project objectives• Inputs

– Scope Statement– Business Strategic plan– Business need

• Underlying reason for the project

Business Department 18

Project Charter / Plan• Includes actions necessary to define,

integrate and coordinate project • PMI Purpose

– Documents project mission– Guide project execution– Document assumptions– Documents decisions– Communication document between stakeholders– Defines key management objectives– Provides management baseline

• Summary or detailed

Business Department 19

Project Charter / Plan• Includes

– Project scope management plan– Cost management plan– Quality management plan– Process improvement plan– Staffing management plan– Communication management plan– Procurement management plan– Milestone list– Resource calendar– Schedule baseline– Cost baseline– Quality baseline– Risk Register

Business Department 20

PM assignment

• Title page• Scope statement• Organisational Breakdown Structure (OBS)• Work Breakdown Structure (WBS)• Responsibility matrix• Project constraints • Quality management statement• Risk register• Master schedule• Cost plan• Conflict resolution • Time-table

Business Department 21

Project Constraints

Time

•Resources people, material equipment

•Scope Deliverables Quality

= Cost

Business Department 22

Project Tradeoffs

Time

CostQuality/ Scope

Business Department 23

Project Tradeoffs

Time

CostQuality/ Scope

Business Department 24

Project Tradeoffs

Time

CostQuality/ Scope

Business Department 25

Managing Stakeholders

• Agree with stakeholders – Costs, time & quality – The return on investment

• Keep information flowing• Demonstrate progress• Involve in decision making

– Implications of changes • Maintain confidence

– Project team– Project

Business Department 26

Feasibility Study

• Check– Is it feasible?

• Evaluation – Market potential– Cost-effectiveness– Implementation feasibility– Technical feasibility– Alternatives

Business Department 27

Feasibility Study

• Analysis of technological requirements• Assessment of resources & capabilities• Identification of risks• Trade-offs (scope, time & costs)• CFS, goals & objectives• Preliminary costs & time estimates

Business Department 28

Importance of feasibility

video

Business Department 29

Importance of feasibility

Business Department 30

Choosing a Project Manager

• Global perspective and understanding of the organization

• Human factors• Identify risks & benefits• Technological awareness• Business management• Alertness

Business Department 31

Project Manager Skills

• Team building• Leadership• Conflict resolution• Technical expertise• Planning• Organizational• Entrepreneurship• Administrative• Management support• Resource management

Business Department 32

Appointing the Project Team

• Plan for team building• Negotiate for team members• Organize the team• Hold a pre-start meeting• Build communication links• Conduct team building exercise

Business Department 33

Projects life-cycle

Initiation & Definition

•Define Project Scope•Conduct feasibility study

DevelopmentPlanning

•Generate Activities & Interdependencies•Determine Responsibilities•Define resources•Develop Schedules & Budgets•Identify Risks

Execution & Control •Track & Manage Project

Closure •Perform Post-Project Reviewfeedback

Business Department 34

Next

• Case Study in detail– Choosing Team Members

• Using MS Project 2007– Project Online

• For Next Tuesday• Reading

– Chapters 2 and 3